The Fed's Reserve is Cracking

The Federal Reserve's tone has gotten a bit more hawkish. Judging from what the economy is doing, there may be more to come.

In the statement released Wednesday following its two-day meeting, the Fed offered a less qualified assessment of the improvement in the job market than it did when it met last month. That was before the strong June jobs report came out. And whereas last month the Fed said that inflation was running below its...